KALiNA Power Rides Alberta Tailwinds as Canadian Data Centre Demand Accelerates

KALiNA Power (ASX: KPO) has advanced its Alberta power development portfolio as regulatory changes and rising AI infrastructure investment strengthen demand for new generation capacity.

Meta’s plan for a C$13 billion AI data centre powered by the proposed C$4.6b Greenlight Electricity Centre has highlighted the scale of investment moving into the province.

KALiNA participated in that development pathway through its 2025 sale of a 180MW load allocation to Meta for C$18 million, while retaining five secured power project sites across Alberta.

A May implementation agreement between the Canadian and Alberta governments placed the federal Clean Electricity Regulations into abeyance in the province, conditionally suspending requirements for gas-fired generators to physically abate emissions by 2035.

The framework allows generators to pay the prescribed carbon tax rather than requiring physical emissions abatement, giving KALiNA flexibility to connect projects to the grid and supply data centres or industrial loads.

Supportive Policy Changes

Alberta also enacted regulations and technical guidelines supporting accelerated approvals and lower computing-equipment levies for data centres using bring your own generation arrangements.

The Alberta Electric System Operator (AESO) is separately finalising a Large Load Allocation Process that would require large data centres seeking grid access to contract with generators bringing on at least an equivalent amount of new generation, with final rules expected in August 2026.

“Speed to market is the most important criteria for hyperscalers and data centres,” managing director Ross MacLachlan said.

“With the AESO’s rules for large load allocations now imminent, coupled with the enhanced regulatory environment in Alberta, we are seeing significantly increased activity on the heels of Meta’s investment—it is clear to us that many companies are in a rush to participate and looking to engage on that basis.”

Alberta Portfolio Advancing

KALiNA continued discussions with regulated and unregulated gas suppliers during the quarter and is assessing participation in an upcoming bidding process covering the Alsike, Myers, and Gilby projects.

Saddle Hills and Clairmont are located in areas described as unconstrained for gas supply, allowing applications to proceed without waiting for that process.

The company’s projects have progressed through the AESO connection process, with Clairmont advanced into cluster two and the remaining sites placed in cluster three while retaining targeted mid-2029 service dates.

KALiNA has posted a C$2.6m letter of credit for Clairmont and filed a cluster three application for a 100-megawatt electrical connection at Saddle Hills, while withdrawing the Lone Pine connection after ending rezoning work at its previous Rocky View County site.

Project Funding Discussions

Investment bankers arranged meetings and presentations with institutional and infrastructure investors during the quarter as KALiNA continued seeking project funding.

Operating cash outflow totalled A$962,000, including A$712,000 for Alberta project development, A$211,000 for corporate staff and A$88,000 for administration and corporate costs.

The geographically distributed portfolio is intended to reduce exposure to gas availability, electrical congestion, and regional zoning constraints, while KALiNA is investigating two additional locations.

Management is targeting a first project final investment decision in the second quarter of 2027 as regulatory settings, gas supply work and interconnection planning progress.

The company closed the June quarter with about A$14.3m in cash, no debt, and an estimated 14 quarters of funding at its reported operating expenditure rate.